Duterte says he wants to end 5-6 lending scheme

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Metro Manila (CNN Philippines, July 10) — President Rodrigo Duterte issued a stern warning against those are engaging in the '5-6' money lending scheme.

In an interview with media in Pampanga Tuesday, he said loan sharks should not make life harder for poor Filipinos. The President added he would either stop the 5-6 practice or the collectors themselves.

"Kasi ang sinabi ko, ‘pag hindi niyo hintuin ‘yang 5-6 na ‘yan, kayo ang hintuin ko.' Mark my word," he said

The '5-6' lending scheme is the act of issuing small loans with a hefty interest of twenty percent.

In February last year, the President mentioned wanting to put a stop to the schemes, whose lenders are mostly allegedly Indian nationals or migrants.

Back then, Duterte said while there is nothing wrong with money-lending businesses per se, the '5-6' lending scheme allegedly is disadvantageous to Filipinos.

"Okay naman yan magpahiram sila ng pera, but ang bagong style kasi nila, pahiramin nila ng pera yung pobreng Pilipino tapos pabilihan pa nila ng mga refrigerator, mga appliances. So doblado and kalbaryo ng mga Pilipino. If you do that, I will get angry," he said.

[Translation: It's okay for them to lend money, but their new style is they lend money to the poor Filipinos and then they make them buy refrigerators and other appliances. It becomes twice as hard for Filipinos.]

CNN Philippines correspondent Rex Remitio contributed to this report.